Pinterest and Google are the least exposed to IDFA, they said.įacebook has been outspoken about the change, most recently running newspaper ads, publishing a new website and running a blog post outlining its arguments opposing Apple over the change it claims "threatens the personalized ads that millions of small businesses rely on to find and reach customers." Facebook, in its blog post, argued that Apple's new tracking rules are "about profit, not privacy" and said it believes Apple is behaving anticompetitively by using control of the App Store in a way that benefits its bottom line at the expense of developers and small businesses.Īpple told CNBC that the privacy feature gives iPhone users more control and transparency over how their data is tracked and used for advertising, and that apps will be able to explain the benefits of tracking to users in the prompt. They argue Twitter has some modest exposure to mobile app downloads, but the exposure is relatively small compared with that of Facebook and Snap. In a December note, Bank of America analysts also said Facebook and Snap are most at risk from the changes, potentially creating a 3% revenue headwind for Facebook and a 5% headwind for Snap. "We expect more attention on this issue as we approach 4Q earnings/2021 outlook, and we'd be buyers on weakness, particularly of FB and SNAP shares, attributable to upcoming iOS 14 changes." other sub-scale platforms, programmatic ad networks and publishers, we expect the Big Six online ad companies to fare better than the rest of the industry," they wrote. "However, when it comes to gravitational pull, relative ad efficacy, and access to 1st party data vs. They said Google and Amazon have the lowest relative exposure. The analysts said based on these parameters, Facebook and Snap have the highest potential headwind due to IDFA changes, followed by Twitter and Pinterest. Broadly, those companies include those in gaming, dating, ride-hailing and streaming video. The factors include scale, access to first-party data, exposure to iOS devices, relative revenue contribution from app install ads, off-platform ads, ads purchased by small businesses and ads purchased by industries relying heavily on paid mobile user acquisitions. MKM analysts said they created a framework based on seven factors to determine the change's risk to online ad companies.
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